#United States #Senior Notes #Oklahoma City #Ascent Resources #ARU Finance

Ascent Resources Utica Holdings to Offer New Senior Notes

Ascent Resources Utica Holdings, LLC, along with its wholly-owned subsidiary ARU Finance Corporation, has recently disclosed its plan to initiate the sale of $500 million in senior unsecured notes, which are set to mature in 2033. This offering reflects the company's intentions to bolster its financial standing while transitioning its debt portfolio to more favorable terms.

Details of the Offering

The anticipated sale will adhere to specific regulations under Rule 144A and Regulation S of the Securities Act of 1933, facilitating its placement among qualified institutional buyers and non-U.S. entities outside of America. The notes being offered have not been registered, and thus their sale is contingent upon compliance with the legal stipulations governing such financial instruments.

Ascent Resources plans to utilize the net proceeds from this offering, alongside existing cash reserves and borrowings from its revolving credit line, to redeem its current outstanding 8.25% senior notes due 2028, enabling a streamlined and more efficient debt structure.

Redemption Plans for 2028 Notes

The company will issue a conditional redemption notice to the holders of the 2028 notes, contingent on the successful closing of the current offering. Such a strategic move aims to optimize Ascent's financing strategy and reinforces its commitment to maintaining a robust fiscal environment.

Ascent Resources Overview

As one of the leading private producers of natural gas in the United States, Ascent Resources focuses on the acquisition, development, and operational management of natural gas and oil assets found in the Utica Shale located in southern Ohio. The company is dedicated to advancing cleaner energy solutions while also being committed to minimizing its ecological footprint. Ascent aims to provide affordable energy solutions, supporting both the nation’s energy needs and environmental sustainability.

Market Considerations and Future Statements

While the company expresses confidence in this offering, it also acknowledges the inherent risks and uncertainties associated with market conditions that could influence the success of the sale. Forward-looking statements indicate potential variances in results caused by market behavior and other unpredictable factors.

Ascent emphasizes the preliminary nature of this announcement, clarifying that it does not constitute an offer or solicitation of purchase for the new senior notes or any other securities unless proper registration is made. The company aims to navigate these financial maneuvers with care, fostering an environment conducive to growth and sustainability in the energy sector.

For More Information

Investors and interested parties can reach out through Chris Benton, Vice President of Finance and Investor Relations, to gain further insights into the offering and its implications for Ascent's operations moving forward.

Further updates regarding the sale, potential risks involved, and strategic decisions made by Ascent Resources will be communicated as the situation develops, ensuring transparency and informed investment opportunities in the wake of this initiative.